PayPal is investing in its platforms and capabilities to keep up with consumer demand for digital payments. 

“Today, we operate in a massive, $6 trillion plus, global e-commerce market that benefits from the ongoing digitization of payments,” PayPal President and Chief Executive Alex Chriss said during today’s second-quarter earnings call.

To keep up with the digitalization of payments, PayPal plans to: 

• Transform its global business into an omnichannel experience; 

• Enhance its in-app offers; and 

• Improve checkout flows. 

BIGGER PICTURE: As PayPal continues to enhance its platform, the broader payments industry continues to move toward digitalization, according to financial services provider Marqeta’s State of Payments report released July 23. 

The report, gleaned from a survey of 4,000 consumers, found that: 

• 46% of U.S. consumers used contactless payments in the past seven days; and 

• 31% say their use of cash has decreased during the past year. 

“Today’s consumers demand fast, effortless and secure payments, fueling the rise of contactless payments,” Todd Pollak, chief revenue officer at Marqeta, told Bank Automation News. 

BY THE NUMBERS: In Q2, PayPal reported: 

• Net revenues increased 8% year over year to $7.9 billion; and 

• Total payment volume increased 11% YoY to $416.8 billion. 

MARKET REACTION: PayPal shares increased 8% to $64.00 at market close on Tuesday. PayPal has a market capitalization of $67 billion. 

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